Which item would be considered a non-current asset in capital expenditure?

• A. Raw materials inventory.
• B. Large-scale solar panels and e-waste recycling facilities.
• C. Wages for workers.
• D. Office supplies.

Answer: (B)

Capital expenditure is about acquiring or upgrading long-term assets that will benefit the business for more than one year. The item describing large-scale solar panels and e-waste recycling facilities fits this idea because these are tangible assets that will be used over multiple years to support operations and expand capacity. They are recorded on the balance sheet as non-current assets and are depreciated over their useful life, reflecting their long-term value to the business.

In contrast, raw materials inventory is a short-term asset used up in production this year, wages for workers are period expenses, and office supplies are consumed quickly. These do not count as capital expenditure because they don’t provide long-term, ongoing value beyond the current period.